There was only one major economic report last week, but the data it presented was a very big negative surprise. The ISM Non-Manufacturing Index, which tracks the service sector, was released on Tuesday and showed a decline from 55.5 to 51.4—a six-year low and significantly worse than the expected small drop to 54.9.

Last week’s economic data showed that U.S. consumers continue to earn and spend while business continues to struggle. With both income and spending up, and surprisingly high levels of confidence, consumers are still driving economic growth. Business, on the other hand, has stepped back from the stronger results of the previous several months.

As I said yesterday, the jobs numbers are (in my opinion) the most important economic data we need to watch. It seems appropriate, as the Labor Day weekend begins, to spend some time thinking about where the labor market is going.

Of all the economic reports out there—and there are thousands—the one I follow most closely is the employment report.

Why? Jobs are the best single indicator of what the economy is doing.

With the U.S. economy trending up and the international economy improving, where should investors look? Yesterday afternoon, I was on CNBC’s Closing Bell offering thoughts on the day's market activity and the sectors to watch, including industrials and energy.

Last week’s economic news showed that business confidence and activity are still improving. Notably, the housing market continues to show significant demand, although it’s now struggling with low inventory—a problem of success. Durable goods orders also ratified the continuing growth in the manufacturing and industrial sectors.

Today’s guest post is from Chad LaFauci, director of real assets at Commonwealth.

At the end of the month, the Global Industry Classification Standard (GICS) will introduce a new Real Estate sector—the first time a sector has been added since the system’s inception in 1999.

Last week’s economic data showed that business confidence and activity continue to improve. Plus, housing sentiment and activity continue to expand, while manufacturing and even mining have started to grow again. Overall, last week’s results demonstrate that the weakest part of the recovery—private business—continues to strengthen.

Last week’s limited economic data showed that consumers may be taking a break from spending, at least for the moment. Given a smaller-than-expected bounce back in confidence and a disappointing retail sales report, we need to keep an eye on whether consumer spending will continue to drive economic growth.

Last week’s data showed that, despite a small pullback from the previous month, business confidence remains positive across the board. Consumers also continued to demonstrate their confidence by spending. Finally, the jobs report came as a very positive surprise, suggesting that consumers are both willing and able to keep doing their bit for the economy.